MePSS Webtool - Tool (Level 4)

 
Worksheet W05 - SWOT Analysis
Table of Contents
1. Objective
2. Putting into Practice
3. Implementation
4. Software, templates and other support
5. Call on Resources
6. Literature, examples and background information

Objective Table of Contents

The objective of this tool is to gain an understanding of the market positioning of the current offer and to conduct a first identification of the strengths and weaknesses of the company’s business model.



Putting into Practice Table of Contents

2.1 When and why should this tool be used?

This tool should be used namely as part of the first phase of the MEPSS methodology, “Strategic Analysis”. It should then be kept as a support to the development of the PSS: following the design work in the ‘Exploring Opportunities’ phase, it should be used to ensure that the kind of offer under development builds on the strengths and opportunities of the company and that it resolves some of the threats and weaknesses.

2.2 Who should use this tool?

This tool should be used by the PSS champion at the beginning of the project, in order to focus discussion during the meeting. The quality of the results obtained are dependent on the knowledge of the participants of the company’s current strategy.



Implementation Table of Contents

3.1 How should this tool be used?

Step 1 – Strategic market analysis

In this first step, address the following questions to gain a good overview of current market:

§ Who are the current clients, buyers and users of the company’s current products/services? (consumers, consumer segment, business customers, etc.)

§ What is the market penetration within the various market segments?

§ What is the size of the overall market for similar products (and connected services)?

§ Who are key competitors (current/potential competitors in the near future)?

§ What information is available on their market share, growth potential, etc.?

Step 2 – Market SWOT

This step should enable to gain a good understanding of the unique selling points, the barriers to entry and weaknesses of the company.

The SWOT analysis should also address from the customer perspective the following questions:

§ In which respect has your offer, compared to that of your competitors, a better and in which respect an inferior performance to customers (e.g., price, quality, image, etc.)?

§ What is your competitive advantage in terms of client satisfaction (i.e., About what are your customers more satisfied, and in what respect are they less satisfied than your competitors' customers)?

§ Which market segments does your company attain, and which segments do competitors attain? What is the market penetration of your company and of the competitors in the whole market and in the various market segments?

§ Is your company able to provide flexible, tailor-made solutions to the customer?

§ Can competitors easily imitate your offer?

3.2 Result

This analysis will help orient thoughts that will emerge in the design phase for the PSS, so that the development of the PSS is built on the emerging opportunities and remains focused on the company’s priorities.

A completed Markets SWOT analysis looks like this one on the “Selling-paint-surface instead of Selling kg-of paint” case:

Strengths

· No impact on health in paint application

· Durability of painted coating

· Attractive to customers with high environmental awareness

· Nice smell

· Natural, understandable product

Weaknesses

· Perceived high price (in EUR/kg of paint)

· Perceived difficulties in proper paint application

· Environmental image makes it unattractive for large public (lack of trust in quality)

· Very small market penetration

· Difficult to reach new market segments

Opportunities

· Health regulation for professional painters is becoming more severe

· Disposal regulation for (professional and other) painters becomes stricter

· Wish of professionals and customers to handle disposal in an environmental friendly manner

Threats

· Synthetic paint is improving environmental performance

· Synthetic paint is far more accessible for large public and professional painters

· Environmental awareness is becoming less important as a unique selling point.

3.3 Input needed/ data required/ data acquisition process

This tool requires participation of people with relevant knowledge of the company’s current offering. The quality of the results depends on this.



Software, templates and other support Table of Contents

4.1 Software

This tool does not require any software.

4.2 Templates and other support

Strengths

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Weaknesses

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Opportunities

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Threats

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Call on Resources Table of Contents

5.1 Personnel and time needed

This tool requires 2 hours of brainstorming and some homework to complete the diagram with more detailed information.


Literature, examples and background information Table of Contents

6.1 Methodological References

Excerpt from: MEPSS Customer Acceptance Methodology (15 January 2004, Wilma Aarts/Gerd Scholl)